| midnightMDX |
TAUNTON, Mass. — A 53-year-old wife and mother fatally shot herself shortly after faxing a letter to her mortgage company saying that by the time they foreclosed on her house that day, she would be dead.
Police said that Carlene Balderrama used her husband's high-powered rifle to kill herself Tuesday afternoon, shortly after faxing the letter at 2:30 p.m.
The mortgage company called police, who found Balderrama's body at 3:30 p.m. The auction was scheduled to start at 5 p.m. and interested buyers arrived at the property in Taunton, about 35 miles south of Boston, while Balderrama's body was still inside, according to Taunton Police Chief Raymond O'Berg.
Police did not immediately release the name of the mortgage company. O'Berg said Balderrama's fax read, in part, "By the time you foreclose on my house I'll be dead."
O'Berg also said a suicide note found next to Balderrama told her husband, John, and 24-year-old son to "take the (life) insurance money and pay for the house."
"I had no clue," said John Balderrama explaining that his wife handled all the couple's finances. "I'm just lost. I tell you I'm beside myself."
He said Carlene had been intercepting letters from the mortgage company and shredding them without his knowledge. He had no idea she hadn't paid the mortgage in 42 months.
"She put in her suicide note that it got overwhelming for her," he told The Associated Press in a phone interview Wednesday. "Apparently she didn't have anyone to talk to. She didn't come to me. I don't know why."
John Balderrama filed for Chapter 13 bankruptcy three times from 2004 to 2006, but the courts dismissed the petitions. Debtors who declare bankruptcy under Chapter 13 generally can keep their homes while paying off their debts under a court-approved reorganization plan.
:( |
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| laborlitigator |
| There had to have been a better way to deal with this. |
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| hammermdx |
quote:
Originally posted by drjay
Very sad.
Indeed. |
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| LizandZeke |
I can understand her feeling of helplessness. The housing market is in a quagmire right now. People cannot keep up with the payments they (foolishly) entered into a few years back with the hope of refinancing when the house appreciated. They cannot sell the house because values have depreciated to a amount less than they owe. So foreclosure becomes the only option. This is happening everywhere. Some folks are just walking away from their homes.
It is unfortunate that this woman did not reach out for help from her family and friends. Very sad indeed. |
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| keremoner |
Very sad. Most people don't seem to realize that there is one other option: Approach your note holder for a short sale. You'd be surprised how many lenders are willing to let you sell the property for less than you owe on it.
quote:
Originally posted by LizandZeke
So foreclosure becomes the only option.
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| gmc74 |
It is sad that someone killed herself, what I am most shocked about is that the mortgage company let them go 42 months with out paying... 3.5 years!
That being said, most people who are getting caught up in this housing crunch brought the problem on themselves. I have a friend that is getting foreclosed on because he thought it would be a good idea to get a house that he couldn't afford at the peak of the market, on an interest only loan... dumbest decision ever. If you can't afford a 30 year fixed, you can't afford the home, period... I know people are pissed at the mortgage companies for making the loans, but that would be like going after the company that made the metal in a bullet.
Just because something can be done, doesn't mean you have to do it... personal responsibility is a *****. |
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| keremoner |
Yeah, funny thing is that 3.5 years ago, we were at the hight of the market with houses selling like hotcakes. Why didn't they sell then?
I don't fault mortgage companies nearly as much as borrowers for being reckless and most of all the realtors who get paid to represent the buyers. They were supposed to look out for their clients and advise them against stupid decisions had they been operating ethically. They were the worst offenders since they should have been more sophisticated than the average home buyer out there.
quote:
Originally posted by gmc74
It is sad that someone killed herself, what I am most shocked about is that the mortgage company let them go 42 months with out paying... 3.5 years!
That being said, most people who are getting caught up in this housing crunch brought the problem on themselves. I have a friend that is getting foreclosed on because he thought it would be a good idea to get a house that he couldn't afford at the peak of the market, on an interest only loan... dumbest decision ever. If you can't afford a 30 year fixed, you can't afford the home, period... I know people are pissed at the mortgage companies for making the loans, but that would be like going after the company that made the metal in a bullet.
Just because something can be done, doesn't mean you have to do it... personal responsibility is a *****.
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| gmc74 |
quote:
Originally posted by keremoner
Yeah, funny thing is that 3.5 years ago, we were at the hight of the market with houses selling like hotcakes. Why didn't they sell then?
I don't fault mortgage companies nearly as much as borrowers for being reckless and most of all the realtors who get paid to represent the buyers. They were supposed to look out for their clients and advise them against stupid decisions had they been operating ethically. They were the worst offenders since they should have been more sophisticated than the average home buyer out there.
I agree that the borrowers are the ones at fault, I don't think you can hold a sales person (realtor) responsible, their job is to sell a house, not be your personal finance manager.
I am sure a lot of us in here could get a loan for a ferrari, but we don't do it because we know we can make the payments, but we can't afford the car. Personal responsibility... it is lacking in the US... |
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| keremoner |
I disagree about absolving realtors. When you retain a realtor, you are retaining an agent to negotiate and complete the transaction on your behalf. Ethics would dictate that they are not blinded by the check they will get when they complete their job. It is not a law but ethically, a realtor needs to look out for their client's best interest. On a $600K house, the buyer's agent's fee is usually 3% or $18K. That is a lot of dough to be just driving your clients to open houses. JMHO.
quote:
Originally posted by gmc74
I agree that the borrowers are the ones at fault, I don't think you can hold a sales person (realtor) responsible, their job is to sell a house, not be your personal finance manager.
I am sure a lot of us in here could get a loan for a ferrari, but we don't do it because we know we can make the payments, but we can't afford the car. Personal responsibility... it is lacking in the US...
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| one4gatr |
quote:
Originally posted by keremoner
I disagree about absolving realtors. When you retain a realtor, you are retaining an agent to negotiate and complete the transaction on your behalf. Ethics would dictate that they are not blinded by the check they will get when they complete their job. It is not a law but ethically, a realtor needs to look out for their client's best interest. On a $600K house, the buyer's agent's fee is usually 3% or $18K. That is a lot of dough to be just driving your clients to open houses. JMHO.
Wow... this one is right in my wheel house... I am sure I will p!ss some people off with what I have to say.. but.. the truth is the truth...
I work for WAMU... you westcoast folks will know better than the NE folks...
Been with WAMU pushing 9 years... been in the mortgage business pushing 15...
EVERYBODY in the loop is to blame!
Honestly I believe EVERYONE on this board has run into the numbskulls like the ones who bear the blame...
Quick ??? for all of you... when you bought your MDX... did you know MORE about the CAR, the Financing, warranty, etc... then the guy who sold you the car?
I would venture to say that most of US on this board did! But for each one of us there are 100's who didnt and succumbed to the "sales guy".
Bringing that back full circle to mortgages... everyone got greedy... realtors, brokers, banks... they convinced buyers to buy on PAYMENT (much like cars) and ignored the long term consequences of the paper they were signing.
I worked in orgination for 7 years with WAMU and the last 2 or so in "default".
I will tell you honestly that 90% of these people are in default because of THEIR own bad decisions. I cant tell you how many credit reports I look at where the borrower has a 900$ car payment that is CURRENT but yet they refuse to pay their mortgage. And review their bank statements and you will see them spending 200$ a week eating out!!
Unfortunately with a mortgage the rules are different... you cant roll in a truck and take it away... BUT the laws also handcuff the lenders as well. In short the blame is equally shared... borrowers who signed paper and turned their heads, realtors and brokers who put their commissions over ethics, and banks who backed the paper without considering the long term consequences....
back on topic... very tragic.. but underlying issues for sure... and to boot probably wont get the insurance $$$ because the death was self inflicted. |
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| jhue |
quote:
Originally posted by one4gatr
In short the blame is equally shared... borrowers who signed paper and turned their heads, realtors and brokers who put their commissions over ethics, and banks who backed the paper without considering the long term consequences....
There are some who say the Fed is also to blame, because holding interest rates so low for so long made credit cheap to obtain, and they didn't provide enough oversight of the banking industry.
I love this cartoon: http://docs.google.com/TeamPresent?...auth=true&pli=1 |
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| G. COLTON |
quote:
Originally posted by gmc74
It is sad that someone killed herself, what I am most shocked about is that the mortgage company let them go 42 months with out paying... 3.5 years!
That being said, most people who are getting caught up in this housing crunch brought the problem on themselves. I have a friend that is getting foreclosed on because he thought it would be a good idea to get a house that he couldn't afford at the peak of the market, on an interest only loan... dumbest decision ever. If you can't afford a 30 year fixed, you can't afford the home, period... I know people are pissed at the mortgage companies for making the loans, but that would be like going after the company that made the metal in a bullet.
Just because something can be done, doesn't mean you have to do it... personal responsibility is a *****.
Absolutely correct!!!
The adjustable rate mortgage (ARM) was a bad idea from the beginning. Somebody, somewhere should have realized that people being people, somebody was going to get themselves in trouble.
G |
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| one4gatr |
quote:
Originally posted by G. COLTON
Absolutely correct!!!
The adjustable rate mortgage (ARM) was a bad idea from the beginning. Somebody, somewhere should have realized that people being people, somebody was going to get themselves in trouble.
G
Its not just the ARM its the interest only and even better the negative am loans...
But got to disagree with you here.... there are applications for these types of products. The fact is many people signed paper without understanding what the product was. They bought SOLELY on payment. Cant blame the government, brokers, banks, etc... for that one. Its sad but you cant legislate intelligence. |
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| keremoner |
Agreed. Individual responsibility and vigilance is the key. There are simply too many uninformed and uninformable (if that is a word) out there.
quote:
Originally posted by one4gatr
Its not just the ARM its the interest only and even better the negative am loans...
But got to disagree with you here.... there are applications for these types of products. The fact is many people signed paper without understanding what the product was. They bought SOLELY on payment. Cant blame the government, brokers, banks, etc... for that one. Its sad but you cant legislate intelligence.
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| Maik |
To say that the product is to blame is crazy. There is nothing wrong with ARM's IN THE RIGHT SITUATION. It should have never been used to allow people to buy a home that they could not otherwise afford. This, like a car lease, is bad personal finance. For an individual that has been transferred to a location on a fixed rotation of say 2 or 3 years, then it makes sense. If rates are at 12-13%, then it may well make sense. Even very recently, I heard an advertisement for a national mortgage company touting that you should refinance with them so you can pay off those high interest credit cards. Are you kidding me? This may be some of the worst advice possible. Problem is, people are inherently greedy as are many businesses. They want that bigger house or that flashy car and any scheme, no matter how imprudent that allows them to get it will be used. The blame is on the people that allow themselves to get into these situations.
Stupidity and greed.... |
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| midnightMDX |
| Offtopic :p I am glad to see that some topics really spark activity here. Carry on! :cool: |
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| gmc74 |
The products are the vehicles that allow people to get themselves in trouble, but they don't force people to make bad decisions.
I remember when I bought my first house, we had to meet a specific debt to income ratio, and prove where our down payment came from. The banks were being cautious and making sure they were writing a good loan with a low percentage chance that they would get screwed.
I can see a bit of blame on the banks for turning the other way when writing a loan, I still don't think you can hold a real estate agent responsible in any way, but at the end of the day, it comes down to personal responsibility.
People make bad decisions, and bad things happen, like foreclosures. Banks make bad loans, and they get stuck with houses that are foreclosed and under valued.
Stupid people get what is coming to them. |
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| G. COLTON |
quote:
Originally posted by one4gatr
Its not just the ARM its the interest only and even better the negative am loans...
But got to disagree with you here.... there are applications for these types of products. The fact is many people signed paper without understanding what the product was. They bought SOLELY on payment. Cant blame the government, brokers, banks, etc... for that one. Its sad but you cant legislate intelligence.
I guess that I really agree with your disagreement. Huh?
The problem is that we know ahead of time that there are many, many people out there that will never understand what it is that they are doing. How do we help them without interfering with the rights of the others?
'
G |
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| laborlitigator |
quote:
Originally posted by gmc74
The products are the vehicles that allow people to get themselves in trouble, but they don't force people to make bad decisions.
I remember when I bought my first house, we had to meet a specific debt to income ratio, and prove where our down payment came from. The banks were being cautious and making sure they were writing a good loan with a low percentage chance that they would get screwed.
I can see a bit of blame on the banks for turning the other way when writing a loan, I still don't think you can hold a real estate agent responsible in any way, but at the end of the day, it comes down to personal responsibility.
People make bad decisions, and bad things happen, like foreclosures. Banks make bad loans, and they get stuck with houses that are foreclosed and under valued.
Stupid people get what is coming to them.
Stupid banks are also getting what they deserve. |
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| one4gatr |
quote:
Originally posted by G. COLTON
I guess that I really agree with your disagreement. Huh?
The problem is that we know ahead of time that there are many, many people out there that will never understand what it is that they are doing. How do we help them without interfering with the rights of the others?
'
G
Lol... sort of... I just took exception to
quote:
was a bad idea from the beginning. Somebody, somewhere should have realized that people being people, somebody was going to get themselves in trouble.
The banks are getting theirs for making poor decisions... the people who bought on payment are getting theirs for being ignorant. As far as I am concerned this situation is "self correcting". The banks will tighten down and only make loans based upon sound lending practices (i.e. WAMU no longer makes neg am loans) and the people who screwed themselves learned a tough life lesson.
Just like the government making credit card companies increase their minimum payment it really hasnt resolved the issue of people spending carelessly, rather it has put more people into default. The root of the issue is bad decision making and in the end I dont think any oversight will ever cure that ill. |
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| G. COLTON |
You are correct. Letting the government into anything of this type only brings on more problems.
G |
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| keremoner |
| The political aspect of this whole Fannie Mae/Freddie Mac business is also dizzying. As John Bachelor was saying the other day both parties are guilty: Democrats have the guilt of commission for complex set of reasons including both organizations being loaded at the top with former Clinton administration officials like Jamie Garelick and throwing their weight around in the banking committee and Republicans are guilty of ommission by being wusses and doing nothing to conter the bullying of Barney Frank in congress. |
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| hondacuraworld |
quote:
Originally posted by midnightMDX "I had no clue," said John Balderrama explaining that his wife handled all the couple's finances. "I'm just lost. I tell you I'm beside myself."
He said Carlene had been intercepting letters from the mortgage company and shredding them without his knowledge. He had no idea she hadn't paid the mortgage in 42 months.[/B]
That part of it hit home for me. Bigtime.
Anyways, I think that people tend to put faith in the bank's ability to decide if people can afford certain things, moreso than their own personal reckoning.
I can't tell you how many people that I know that claim that they can't make ends meet, but not once have ever sat down and done a simple monthly liabilities and income balance sheet. Once they do, the can't understand how at their present income they have a LOT left over......which is where eating out, shopping trips, etc play in. But, of course they don't count those.
The banks can tell you that you can afford something, but in all reality the bank isn't counting those weekend trips to the mall, nor $100 per week or more spent "eating good in the neighborhood".
This kind of thing didn't happen quite as much when we all grew up, not only because of more personal restraints, but simply because there wasn't as much stuff to buy, and there weren't as many societal "needs". Past the car and the color TV, there wasn't a lot. |
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| BlueStreak |
quote:
Originally posted by midnightMDX
"She put in her suicide note that it got overwhelming for her," he told The Associated Press in a phone interview Wednesday. "Apparently she didn't have anyone to talk to. She didn't come to me. I don't know why."
:(
This is the REALLY sad part....begging for help and didn't feel she had anyone to talk to. |
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| crmsnidol |
| Guess what mortgage company I work for and have worked for over the last 15 1/2 years? :( |
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| midnightMDX |
quote:
Originally posted by crmsnidol
Guess what mortgage company I work for and have worked for over the last 15 1/2 years? :(
I dont know. Which one? |
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| laborlitigator |
| Fannie Mae? |
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